Simon Venture to Acquire Lucky Brand
A joint venture between Indianapolis-based Simon Property Group Inc. (NYSE: SPG) and Authentic Brands Group in New York is once again adding to its portfolio. CNBC reports SPARC plans to acquire California-based denim company Lucky Brand in a deal valued at more than $140 million.
Lucky Brand, which operates more than 175 stores in North America, filed for Chapter 11 bankruptcy protection in July. SPARC was named the winning bidder in bankruptcy court to acquire the company, giving it control of all Lucky Brand retail stores and e-commerce operations.
“This acquisition will boost the value of our portfolio to more than $13 billion in global retail sales annually,” ABG founder and chief executive officer Jamie Salter said in a statement to CNBC. “Lucky Brand’s DNA resonates strongly with today’s youth and we see tremendous opportunity to unlock its value in key territories around the world.”
SPARC officials tell CNBC it will negotiate with landlords to keep “key stores” open in North America, though they did not specify how many stores would stay open.
The announcement came in the same week that SPARC was named the winning bidder to acquire Brooks Brothers in a $325 million deal. The price increased from the initial $305 million offer.